Tamil Nadu Solar Energy Policy

NLCIL Solicits Bids for 70.5 MW Solar Modules

Tamil Nadu Solar Energy Policy Updates 2017

Tamil Nadu became the 21st state to join the UDAY program in January 2017. Distribution company debt of Rs. 304.2 billion (~$4.48 billion) will be taken over by the state government.

The Tamil Nadu Electricity Regulatory Commission (TNERC) has fixed Rs. 4.50 (~$0.066)/kWh as the new benchmark tariff for solar PV projects and Rs. 10.19 (~$0.157)/kWh for solar thermal projects excluding the accelerated depreciation (AD) in April 2017. The AD component of the tariff has been fixed at Rs. 0.09 (~$0.0014)/kWh for solar PV and Rs. 0.21 (~$0.0032)/kWh for solar thermal.

The pooled cost of power purchases for the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) at Rs. 3.70 (~$0.056)/kWh for the financial year (FY) 2017-18 has been fixed by The Tamil Nadu Electricity Regulatory Commission (TNERC) in September 2017.

OBJECTIVE

• To achieve energy security.
• To reduce carbon emissions.
• To project Tamil Nadu as a Solar Hub.
• To generate 8884 MW of Solar Energy by 2022 (As per MNRE).
• To encourage indigenous solar manu-facturing facilities in the State.
• To promote Research and Development in the solar energy sector and hybrid systems.
• To create skilled man power and emp-loyment in a new industry.

APPLICABILITY

• ROOFTOP SOLAR PV SYSTEMS WITH NET METERING
• WATER HEATING SYSTEMS
• DEVELOPMENT OF SOLAR PARKS

ELIGIBILITY CRITERIA

Solar Power projects will be developed through competitive / reverse bidding. SECURITY DEPOSIT

As regards the security deposit to be paid by captive/third party user, the Commission decides to retain the present arrangements. Accordingly the charges corresponding to two times of the maximum net energy supplied by the distribution licensee in any month in the preceding financial year shall be taken as the basis for the payment of security deposit.

INCENTIVES

• Tax incentives as per Tamil Nadu Industrial Policy.
• SPPs eligible to avail Clean Development Mechanism (CDM) benefits.
• Exemption from payment of electricity tax on 100% of electricity generated for self-consumption/sale to utility for 5 years.
• Single window clearance in 30 day.